Hungary competition watchdog fines Facebook HUF 1.2 bn

Portfolio
The Economic Competition Office (GVH) has fined Facebook Ireland Ltd. HUF 1.2 billion (cca. EUR 3.63 mn) after finding it in breach of the law for advertising its service as free on its main page and help centre, the GVH announced on Friday. While users did not have to pay a fee, their user activity and data led to profit for Facebook and can thus be considered payment, the ruling explaining the record consumer protection fine said.
facebook libra szablyozás

Facebook's zero-cost business model is based on attracting users through content shared on its pages and collecting detailed data on their interests, behaviour and buying habits. It then uses this data to sell targeted advertising to its business customers and places the ads in the news feed to reach consumers, the GVH said..

The competition authority found that the "free to join" and "free and always will be" messages displayed on the main page distract consumers from the compensation they agree to, i. e. the surrendering of their data and the scope and consequences of this action. The messages the GVH found misleading were displayed on the main page from January 2010 until 12 August 2019 and were only removed from the help centre on 23 October this year.

When setting the fine, the GVH considered only a fraction of Facebook's Hungarian advertising revenue and also took into account that the company made a global change to its slogans in question during the investigation.

We can get a lot of valuable online services free of charge. But there’s no such as a free lunch. We still pay for these services – not in cash, perhaps, but with our data,

Margrethe Vestager, Executive Vice President of the European Commission for a Europe fit for the Digital Age, said at the Internets of the World Conference in Copenhagen just yesterday.

"But the expectation that things on the Internet should naturally be free has helped to dull our suspicions. And so we’ve accepted a sort of Faustian bargain – and to save a few kroner today, we’ve accepted an uncertain, unlimited risk for the future," she added.

 

More in Business

uzsoki mate
September 03, 2025 12:00

EU’s new directive also affects Hungarian companies: how to prepare for NIS2

Interview with Máté Uzsoki, Managing Director of Serpentarius Software

telekommunikáció távközlés telekom
August 29, 2025 12:14

4iG reports growth in its Q2 flash report

Revenue and EBITDA both increased for the group

4iG_Irodahaz_Montevideo
August 28, 2025 08:05

4iG plans major step with Brazilian company

The two companies signed a non-binding MoU

KKV-vállalkozás-versenyképesség-felmérés-kutatás-makroökonómia-koronavírus-gazdaság
August 19, 2025 11:17

Ráhel Orbán sells business to husband's holding

Family ties

GettyImages-1358049866-árfolyam-befektetés-elemzés-gazdaság-grafikon-kereskedés-pénzügy-piac-részvény-tőzsde
August 15, 2025 10:40

Hungary 4iG increases capital in space and defense subsidiary

HUF 36 billion in the first phase

August 14, 2025 13:42

Hungarian Mészáros Group acquires stake in major Slovak construction company

Deal to be finalised by end-October

LATEST NEWS
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts, spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas

Detailed search